Private Equity Co-Chair Discusses Impact of CIFUS on Private Equity Transactions

Will Shields, co-chair of Ropes & Gray’s global private equity practice, discussed the continued impact of the Committee on Foreign Investment in the United States (CFIUS) on private equity-backed transactions. His remarks appeared in an article published by Law360 on Jun. 25.

Mr. Shields discussed how our private equity practice is also monitoring the Foreign Investment Risk Review Modernization Act; the proposed legislation in Congress aims to broaden the reach of CFIUS in an effort to curb foreign investment in sensitive U.S. technologies and infrastructure. Mr. Shields notes that “we want to make sure we are able to structure deals in a way that it’s going to be able to get through CFIUS.”

He noted that the legislation could be harmful to the U.S. private equity industry if it “slows down the process for a private equity buyer to acquire a company in a way it wouldn’t slow down a U.S.-based conglomerate or corporate buyer.”

In its article, Law360 highlighted that Ropes & Gray closed more than $20 billion in private equity transactions in a span of two weeks. Almost half of the firm’s attorneys around the globe are shaping private equity deals, advising on a range of issues that are specific to private equity funds, such as tax, intellectual property and debt financing.

The article is available here (subscription required).